13th IDRBT Banking Technology Excellence Awards 2016-17

The Thirteenth Edition of the IDRBT Banking Technology Excellence Awards was held on 1st of September, 2017.

Shri S. Ganesh Kumar and Shri Sudarshan Sen, Executive Directors, Reserve Bank of India, presided over the function. The CEOs of Banks and their IT Chiefs attended the function. The key contributions, being made by the Institute on the day, are as under:

Release of Handbook on “Information Security Operations Center”

We are in the age of anytime anywhere banking. Technology innovation has moved banking to desktops, laptops, tablets and mobiles. The customer has grabbed banking into her palm. Yet, she has issues with the new era digital banking because of the increasing trend in failed or fraudulent transactions.

It is the responsibility of the banks to put in place all necessary infrastructure and systems to ensure that digital banking is safe and secure. They have to ensure confidentiality, integrity and availability, the three key requirements of secured banking.

Banks have been working on security solutions at various levels. In order to put all such solutions together and to build a system that not only integrates the best features of the solutions but also a super structure that identifies abnormalities early and alerts stakeholders immediately, banks have started working on Information Security Operation Centers (ISOCs).

Though there has been considerable work done by academicians, security solution providers and banks in the realm of ISOC, there are still several issues and concerns at the stage of implementation of ISOC. During IDRBT’s interaction with the employees of banks, a need was felt to bring out a Handbook on ISOC to help banks.

Accordingly, IDRBT with the active participation of banks and solution providers, prepared the Handbook on ISOC. It presents in detail the steps to be taken during conceiving, designing, building, maintaining and managing various phases of ISOC. It is expected that all security practitioners in banks would benefit from the Handbook in every stage of ISOC implementation.

Release of FAQs on “Cloud Adoption for Indian Banks”

There has been considerable debate among banks and other financial organisations in India regarding the suitability of cloud-based solutions. On one hand, big-sized banks have made considerable investments into their IT infrastructure and put in place appropriate HR systems to manage huge and complex solutions for various operations. On the other hand, smaller banks, cooperative banks, new players such as payment banks and small finance banks are considering cloud model as the most suitable alternative for their solutions.

The Reserve Bank of India has encouraged the urban cooperative banks to move towards cloud based core banking solution in order to ensure that they are able to offer products and services similar to what other banks have been offering.

It is in this context of banks looking for cloud solutions that it was felt it would be useful to bring out a document detailing the relevant facts about cloud technology, including the concerns to be addressed. It was also felt that a question-answer format would be most suitable for the presentation for easy readability.

Accordingly, frequently asked questions were compiled, with answers to each one of them, and were grouped into four different sections – (i) cloud computing overview, (ii) architecture and technology, (iii) applications and usage scenarios and (iv) risks and challenges. It is expected that these FAQs on Cloud Computing would be helpful to various stakeholders like banks, solution providers, academic institutions and regulators.

Shri Sudarshan Sen, Executive Director, RBI, released the FAQs on Cloud Computing and presented the Initial Remarks on the occasion.

Launch of SFMS MI 6

The Structured Financial Messaging System (SFMS), the Messaging platform for financial transactions, was designed and launched by IDRBT on December 14, 2001. The SFMS is now used to exchange secure communication between banks and critical systems such as National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) run on it. The SFMS was enhanced with additional features for Letter of Credit and Bank Guarantee in March 2012. Presently, the SFMS is managed by the Indian Financial Technology and Allied Services (IFTAS), a Section 8 company promoted by IDRBT. Key functional and security enhancements have been made for the SFMS MI 6, the details of which are hereunder:

Functional Enhancements

New – SFMS helpdesk reports module

New – Archival of production and test messages

Production and Archived data maintained in two different databases

Separate listing display for Production & Archived data.

New – Reports available in Excel, HTML, CSV & PDF formats, apart from the current HTML format

Listing and access to different filters on the display page is made menu and sub-menu driven, making it user-friendly

Accessibility of menus is made as per the defined user profiles.

Security Enhancements

Critical Open Web Application Security Project vulnerabilities have been addressed

SFMS Hub can be logged in through Internet Explorer, Chrome and Mozilla Firefox

Keynote Address

Shri S. Ganesh Kumar, Executive Director, RBI, presented the keynote address on “FinTech and Banks: Opportunities and Challenges” and the key points of his speech are as hereunder:

IT systems are at the centre of all our operations in the world of today

Why is it that cyber security assumes great significance for the banking sector?

First, this sector has been an early adopter of IT and today no banks can even think of operations without IT.

Second, IT has helped financial institutions to grow and provide better services to their customers.

Third, new delivery channels are evolving all based on IT. These delivery channels provide customer convenience; they are, however, vulnerable to cyber-attacks.

Fourth, cyber-attacks on the banking sector implies that there is money to be gained by the attacker.

Fifth, the financial sector is a prime target of cyber-attacks both because of the data they carry and the impact that a disruption on their operations could have on the economy.

And finally, security cordons cannot always be totally perfect. All these have made the IT intensive banking sector as a prime target for cyber-attacks.

An important component of IT Security relates to Authentication

As new products and delivery channels using large scale IT and Communication systems gain ground, the need for enhanced security also gains importance. This is where FinTechs have mushroomed. They provide solutions to the complex needs of banks and their customers; they aim to provide products and services which are affordable and convenient to use

In the world of today, two words are gaining importance – cyber security. If cyber security has to be effective, there needs to be a framework to combat cyber incidents

FinTechs are also playing a vital role in the emerging areas of Payment and Settlement Systems

Use of QR for payments is perhaps and easy, convenient and cost-effective way – this is a product of a Fintech

Collaboration by banks and FinTechs will yield smart outcomes and smart banks will find smarter ways for better use of FinTechs to serve smarter customers who are now demanding better, easy-to-use services.

Launch of the IDRBT Journal of Banking Technology

Adoption of technology is bringing several benefits to banking. Such technology adoption is made possible by the work carried out by several individuals and institutions across the globe. While on one hand there have been advancements in computer, communication and other relevant technologies due to the research carried out in academic and research institutions; on the other, bankers and technology companies are working together to ensure that newer technologies are adopted for better banking. It is the combination of fundamental and applied research that is taking banking technology forward.

IDRBT has been carrying out research and development in the area of technology useful to banks and other financial institutions in India. The IDRBT Journal of Banking Technology is the culmination of the Institute’s efforts to bring together high quality research output across all areas of technology that are directly or indirectly relevant to banking.

The aim of the Journal is to promote new thinking, conceptual frameworks, and research/practice-oriented innovative ideas on topics of current interest and broad relevance to application of Technology in Banking and Financial Services.

The scope of the journal covers all aspects of technology, which directly or indirectly contributes to the technological growth of the banking and financial sector, both from researchers’ as well as practitioners’ perspectives. It publishes original research/practice articles on all aspects of computing and communication technologies, which are/can be used in banking and finance. So, the journal carries two types of articles: Type I – Research Articles; and Type II – Practitioner’s Perspective, and this helps the journal achieve a fine balance between research and practice so as to reach out to all stakeholders.

The Editorial Board of the Journal, being published twice a year, consists of the following reputed global researchers/practitioners:

Release of Book on “Banking Technology in India: Present Status & Future Trends”

For over a decade, the Institute has been evaluating and presenting the IDRBT Banking Technology Excellence Awards. In the process, we have been closely watching the developments in the adoption of technology by banks and attempting to share insights with all by bringing out a report every year, coinciding with the Banking Technology Awards. The Report is evolving into a useful source of reference for bankers, academics and researchers for the collective wisdom and data points it provides for a broader understanding of and further research in Banking Technology and related areas.

This year, the contributions from experts focus on an interesting array of topics like Innovation, Robotic Process Automation, Digitisation of India, Dealing with Demonetisation, Cyber Security, Inclusive Payment Systems and Analytics. The report also contains an analytical summary collated by our Knowledge Partner, Deloitte, from the responses received from banks – on their technology implementation and future plans – as part of their responses to the IDRBT Awards for Excellence in Banking Technology for the year 2016 – 17. The book contains the following contributions:

IDRBT Banking Technology Excellence Awards for the Year 2016-17

The IDRBT Banking Technology Excellence Awards is synonymous with excellence in technology adoption, upgradation, absorption and innovation. In its 13th edition this year, the IDRBT Banking Technology Excellence Awards, are the benchmark for recognizing banks, which innovate and explore technology to improve cost, reach, customer service and efficiency. Pioneering and out-of-the-box approaches in the usage of technology for improving productivity and profitability are recognized through these awards.

As technology evolves and changes, the categories of awards also undergo changes. Over the past twelve editions, several categories have been dropped and new categories introduced. This year, the Institute has redefined quite a few categories so as to reflect the technological changes in the Indian Banking and Financial Sector.

The Jury for the 13th Edition of the IDRBT Banking Technology Excellence Awards consisted of:

This year, the IDRBT Banking Technology Excellence Awards, were presented in eight categories to the Commercial Banks and one category each to Co-operative Banks and Regional Rural Banks. This year’s edition of the BT Awards also recognizes banks that have demonstrated commendable performance across multiple categories. The award has been termed as ‘Best Emerging Bank’ award.

To carry out effective evaluation, commercial banks are sub-divided into large, mid-sized and small banks. This provides a level playing field for the banks to be compared for evaluation on similar scale and size.

Shri S. Ganesh Kumar and Shri Sudarshan Sen, Executive Directors, Reserve Bank of India, presented the IDRBT Banking Technology Excellence Awards for the year 2016 – 17, at a very special function today to all the winners. And the winners of the 13th IDRBT Banking Technology Excellence Awards are:

Award Category

Winner

Award Received by

Photos

Best Bank Award for Use of Technology for Financial Inclusion Among Large Banks

State Bank of India

Shri D. A Tambe, Chief General Manager – IT

Best Bank Award for Use of Technology for Financial Inclusion Among Mid-Size Banks

Vijaya Bank

Smt. Nirmala Sridhar, General Manager - IT

Best Bank Award for Use of Technology for Financial Inclusion Among Small Banks

Best Bank Award for Use of Technology for Fraud Prevention among Large Banks

HDFC Bank Ltd.

Shri Munish Mittal, Chief Information Officer

Best Bank Award for High Performance IT Ecosystem among Large Banks

Bank of India

Shri Sheoji Ram Meena, General Manager

Best Bank Award for High Performance IT Ecosystem among Mid-Sized Banks

IndusInd Bank Ltd.

Shri Sanjay Jaswal, Chief Information Officer

Best Bank Award for High Performance IT Ecosystem among Small Banks

South Indian Bank Ltd.

Shri V. G. Mathew, Managing Director & CEO

Best Bank Award for Cyber Security and Defense among Large Banks

HDFC Bank Ltd.

Shri Munish Mittal, Chief Information Officer

Best Bank Award for Cyber Security and Defense among Mid-Sized Banks

IndusInd Bank Ltd.

Shri Sanjay Jaswal, Chief Information Officer

Best Bank Award for Cyber Security and Defense among Small Banks

City Union Bank

Dr. N. Kamakodi, Managing Director & CEO

Best Bank Award for Innovative Use of Technology among Large Banks

HDFC Bank Ltd.

Shri Munish Mittal, Chief Information Officer

Best Bank Award for Innovative Use of Technology among Mid-Sized Banks

YES Bank Ltd.

Shri Anup Purohit, Chief Information Officer

Best Bank Award for Innovative Use of Technology among Small Banks

The Karur Vysya Bank Ltd.

Shri S. Sekar, General Manager (IT)

Best Emerging Bank Award

Union Bank of India

Shri Rajkamal Verma, Executive Director

Best IT-Enabled Co-operative Bank

The Cosmos Cooperative Bank Ltd.

Mrs. Arti Dhole, Head IT

Best IT-Enabled Regional Rural Bank

Andhra Pragathi Grameena Bank

Shri M. Ananda, General Manager

The top management of the Reserve Bank of India and Indian Banking and including Managing Director & CEOs, CIOs and IT Chiefs of Public, Private and Foreign Banks participated in this special function at IDRBT, Hyderabad.